3. Tendering process

Question 1

How do you decide which contractors to invite to tender? (3 steps)

Answer 1

1. Issue a preliminary enquiry letter based on design recommendations.
2. Issue a pre-qualification questionnaire to interested/sustainable contractors.
3. based on responses a decision can be made to go out to a reasonable number of tenderers, taking into account financial situations, relevant experience, health and safety records.

Question 2

What should you include in a pre-qualification questionnaire? (9 examples + outline the process)

Answer 2

1. Details of contract particulars in accordance with practice note 6.
2. Turnover.
3. Previous relevant experience and references.
4. Company accounts.
5. Personnel.
6. Management and organisational structure.
7. Health and safety records.
8. Quality systems and environmental policy.
9. Provision of bonds/warranties/parent company guarantees.
10. This is done through a questionnaire and interview process with scoring matrix.

Question 3

How should you use a preliminary inquiry letter? (3 points)

Answer 3

1. One month before tendering send out a tender inquiry letter to ascertain whether the firms are willing to submit a bonafide tender.
2. Sufficient information given to contractor to allow them to make a decision.
3. Informed of any other requirements such as bonds and parent company guarantees.

Question 4

How do you decide on the number of tenders? (5 points)

Answer 4

1. Refer to JCT tendering practice note 6.
2. Depends on size of project.
3. Common to have 4-6, provides cover if one drops out.
4. Improves likelihood of competitive tender.
5. Design and build = less tenderers due to cost implications

Question 5

How long should the tender duration be? (4 points)

Answer 5

1. Depends on the procurement process and size of project.
2. Traditional with Bill of Quantities about 1 month to obtain information from sub-contractors. If large and complex then extend the time.
3. 2 stage tender - 1st stage = 2-3 weeks because only prelims.
4. Design and build - 6-8 weeks due to amount of design work needed - better to give enough time to ensure contractors can price it correctly rather than rush it and encourage contractors to price a high risk element into the tender.

Question 6

What to include in the tender submission? (7 points)

Answer 6

1. Invitation to tender letter.
2. Condition of proposed contract. 
3. Preliminaries and pricing document.
4. Specification.
5. Drawings.
6. Pre-construction H&S information.
7. Form of tender.

Question 7

What instructions should you include within the tender submission? (6 points)

Answer 7

1. Date for return.
2. Address to return to.
3. Site visit details.
4. Programme length.
5. Confirmation of receipt of documents.
6. How tender should be submitted.

Question 8

What is a form of tender? (2 points)

Answer 8

1. A pre-printed formal statement in which the tenderer fills in the blank spaces.
2. Contractor provides name, address and the sum of money of which is offered to carry out the works.